1. Field of Invention
The present invention relates generally to the financial service and gift card product industries, and, more particularly, to machines, computer program products, and associated computer-implemented methods of providing promotions and limited offers utilizing a gift card.
2. Background
Gift cards are popular prepayment mechanisms today. In a common scenario, a giver purchases a gift card from a merchant. The giver exchanges funds via cash, check, credit card, or other transaction for a gift card having a value. The giver then gives the gift card to a recipient. The recipient, now a cardholder, can then redeem the value on the gift card at the merchant for goods or services. In this scenario, the gift card acts as a gift certificate.
Because of the convenience and flexibility of gift cards, merchants also use gift cards to provide consumers with rebates, discounts, in-store credit, and other promotions. For example, a merchant may offer a gift card having a value of $5 with any transaction of at least $50. In another example, for test-driving a new automobile, an automobile dealer can provide a consumer a gift card redeemable for a $3 discount at an unaffiliated movie theater. In these scenarios, the gift cards act as promotional items.
In addition to merchants, gift cards can be offered by a parent corporation for redemption at various affiliated merchants, by a bank for redemption at a variety of merchants, or by a shopping center, or mall, for redemption at merchants at the shopping center.
Coupons are printed advertisements redeemed by consumers to obtain a discount on merchandise or services. Coupon books are collections of coupons, which can include a common theme or association. For example, a shopping center can bundle coupons or offers from various merchants in the shopping center into a coupon book to promote the shopping center as a destination and cross-promote the participating merchants. Coupons, however, can require extensive paper handling and result in significant fulfillment costs. Moreover, the distribution of coupons is expensive and can be inflexible. Coupons may be distributed electronically to consumers, e.g., through e-mail or the Internet, but the consumer is generally required to print the coupon in order to redeem an electronic coupon.
In addition, coupons and other promotions, deductions, or discounts can require changes at the POS terminal, including procedures and software, can impose expenses on merchants for technology and training, and can result in inefficiency and uncertainty.